Deadlock between government and EU over KDT compensation plans

In June, the Economy Ministry plans to present the European Commission with a new set of proposals related to cancelling of long-term energy contracts (KDT), as the previous concepts were thrown out by the Commission. "The EU assumes that the contracts were an unacceptable form of state aid and on this point we have to agree," said Deputy Economy Minister Jacek Piechota. The government wanted to pay one time compensations of up to zł.15 billion to all energy producers for canceling the contracts. Piechota admitted that the EU only agreed to compensation in installments for those power plants which will find themselves in financial difficulties if not paid. Domestic power plants and their foreign owners are not satisfied with any of the proposals. It is very likely that banks will become a party in the dispute as they granted loans to plants which were secured by KDTs. (Rzeczpospolita, p. B4) M.M.